Question 1

The problem of scarcity and choice making can be depicted using the tool of curve.

Accepted Answer

A) demand 
B) isoquant 
C) indifference 
D) production possibility D

Question 2

Which of the following concepts are most closely associated with J.M. Keynes?

Accepted Answer

A) control of the money supply 
B) marginal utility theory 
C) indifference curve analysis 
D) marginal efficiency of capital D

Question 3

Inductive method which also called empirical method was adopted by the:

Accepted Answer

A) marginalist school 
B) mercantilists 
C) physiocrats 
D) historical school of economists D

Question 4

Theories are:

Accepted Answer

A) much more complicated than common sense 
B) scientific only if based on normative value judgments 
C) proven if only a few unimportant exceptions exist 
D) developed when we collect data, try to explain how things work, and then

Question 5

If the value of a variable varies as a consequence of the variation in the value of some other variable, it is called:

Accepted Answer

A) exogenous variable 
B) endogenours v ariable 
C) stock 
D) flow

Question 6

The method consistsin deriving conclusionsfrom general truths, takesfew general principles and applies them draw conclusions.

Accepted Answer

A) inductive 
B) deductive 
C) empirical 
D) scientific

Question 7

Who defined economics as: a science which studies human behavior as a relationship between ends and scarce means which have alternative uses:

Accepted Answer

A) j b say 
B) alfred marshall 
C) david ricardo 
D) robbins

Question 8

Macroeconomicsis primarily concerned with aggregates. Which of the following is not a macroeconomic aggregate?

Accepted Answer

A) decision making by a household 
B) the unemployment rate, and inflation levels 
C) national income 
D) the supply of money

Question 9

is a term referring to an intellectual controversy over epistemology, research methodology between Carl Menger, and Gustav von Schmoller.

Accepted Answer

A) methodenstreit 
B) laissez-faire 
C) cetris paribus 
D) quid proquo

Question 10

introduced the concept of welfare in the study of economics:

Accepted Answer

A) fischer 
B) alfred marshall 
C) j s mill 
D) adam smith

Question 11

Division of Labour is limited by the extent of:

Accepted Answer

A) supply 
B) demand 
C) price 
D) market

Question 12

Economic efficiency for the entire economy requires that :

Accepted Answer

A) potential gains to anyone necessitate losses to another 
B) all goods be produced at their lowest possible opportunity costs 
C) maximum-valued output is obtained from given resource 
D) all of the above

Question 13

Milton Friedman restated the :

Accepted Answer

A) labour theory 
B) profit theory 
C) quantity theory of money 
D) wage theory

Question 14

Scientific attempts to describe economic relationships are :

Accepted Answer

A) factual and can never be wrong 
B) accurate ways to predict political viewpoints 
C) known as positive economics 
D) directed at the fairness of social programs

Question 15

Adam Smith, the father of modern economic theory, defined economics as a subject, which is mainly concerned with the study of nature and causes of generation of

Accepted Answer

A) wealth 
B) welfare 
C) hipness 
D) scarcity

Question 16

Which of the following is an example of economic overhead?

Accepted Answer

A) schools 
B) roads and railwlays 
C) sanitary facilities 
D) hospitals

Question 17

Knowledge used to combine resources productively is called:

Accepted Answer

A) comparative advantage 
B) capitalism 
C) entrepreneurship 
D) technology

Question 18

Decisions made in households, firms, and government are the focus of:

Accepted Answer

A) positive economic 
B) microeconomics 
C) normative economics 
D) macroeconomics

Exam 6: Economic Theory and Methodology: Exploring the Fundamentals of Economics